MBO Blog

Over the past year, both supply and demand for independent workers increased. MBO Partners’ latest State of Independence Study found that 72.1 million Americans reported working independently in 2023. A tight labor market and demand for workers with specialized skills led more organizations to rely on independent talent to fill skill gaps. Together, this increased…

MBO Partners’ 2023 State of Independence report found that there have never been more people working independently—more than 72 million Americans reported working as part-time, occasional, or full-time independents. There is a growing demand for independent talent, who are well-positioned to provide companies with flexible, on-demand expertise. And as more people see independent work as…

In a labor market characterized by scarcity and dynamic shifts, the statistics speak volumes about the evolving nature of the workforce. As of October, there were 9.6 million open jobs, significantly outnumbering the 6.5 million job seekers (October BLS Report). This staggering gap emphasizes the ongoing challenge of talent acquisition, pushing organizations to explore innovative…

The holiday season is always busy and taking time to find the perfect little something for your client can be an added stress. Rather than settling for a last-minute gift card or fruit basket, take advantage of our annual holiday gift guide.  We’ve scoured the web and polled our team members to find some of…

Outsourcing projects to independent contractors can be a great way to achieve goals. Today’s work environment is in flux. It can be hard to meet business expectations with a workforce of full-time employees alone. Independent contractors are skilled experts in many different fields. This group of workers can help provide the workforce flexibility and project-based…

The after action review, or AAR, was first created by the U.S. Army in the 1970s as an on-the-spot learning tool to make fast corrections and improvements to a group’s direction and activity. Seeing the potential of such a tool, the business world adopted the AAR and applied it to a range of applications. The…

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. New York Passes Freelancers Isn’t Free Act…

It’s the time of year when we express appreciation in a big way—to family members, coworkers, clients, and the service providers who make our lives easier. Even though you might mass mail (or email) thank-yous in your business, you may have some contacts or associates who deserve a more custom message. They could be fellow…

Conducting an end-of-year review isn’t a practice that just applies to bigger businesses—it’s a process that is valuable to freelancers and independent professionals as well. A business review gives you a chance to look back at what you have achieved, revisit your goals, and consider how to best move forward for the coming year. To…

The year-end holiday season is upon us! From now through New Year’s Day, many of us will juggle additional activities. School events, family visits, and social commitments get added to our usual workload and home responsibilities. For some, stress levels increase as to-do lists get longer and time gets shorter. An added stressor for independent…

Our State of Independence research defines independent workers as full and part-time workers of all ages, skills, and income levels. This includes consultants, freelancers, contractors, temporary or on-call workers, solopreneurs, gig workers, and others who work independently to build businesses, develop their careers, pursue passions, and/or supplement their incomes. According to independent workers who participated…

Organizations of all sizes are increasing their use of independent workers to maximize workforce agility and flexibility. The average company reports that contingent labor makes up 28% of their workforce and this proportion is expected to grow to 38% by the end of 2027. Independent work is becoming more popular and accessible, giving enterprises access…

Forty-eight percent of U.S. independent professionals are either Baby Boomers (19%) or Gen X (29%). It is likely that many of these, especially in the Boomer cohort, are pursuing encore careers as independent professionals. These workers can make valuable contributions to the companies they work with. What Is an Encore Career? An encore career is…

Conducting a year-end business review is a valuable practice as an independent contractor. Taking stock of your accomplishments over the past months, reviewing your network contacts, and setting goals for the upcoming year can help you identify gaps in your business offerings, keep your back office organized, and uncover new ways to grow and evolve….

According to the U.S. Bureau of Labor Statistics, at the end of July 2023 there were 8.8 million open jobs but only 5.25 million job seekers. This gap, a skills shortage mainly in the technology space, and caution around adding headcount has more and more companies turning to independent talent to meet their workforce needs….

“There have never been more payroll jobs in the U.S. There have also never been more people working independently.” 2023 State of Independence Report Those two statements may seem paradoxical, but they are both true. The U.S. independent talent population has grown steadily year on year—from 2020 to 2023 alone it jumped by 89%. Even…

Direct sourcing is a way to connect directly with independent contractors and engage them for project-based work. Rather than using a third-party service like a staffing or consulting firm to find talent, companies can source talent internally using their own resources. This approach helps to save time, money, and resources while often resulting in sourcing…

In today’s fast-paced world, many ambitious individuals, myself included, are continuously seeking innovative ways to pursue our passions and financial goals. For those of us who are inherently creative, the idea of balancing a full-time job while simultaneously running a successful business is an enticing challenge. While it might initially appear as a daunting endeavor,…

As an independent professional, you will spend part (or, in some cases, all) of your career as a solopreneur. With a high degree of flexibility, autonomy, and control, being your own boss has a lot of advantages. The choice to go solo does have challenges. Respondents to our 2023 State of Independence survey cited unpredictable…

Born between 1997 and 2012, Gen Z is the first digital-native generation. Computers, the internet, and smartphones are integral to their day-to-day lives, not the optional features of other generations. Their worldview, colored by a world in turmoil, has fostered a perspective on life and work that significantly differs from their elders. One in every…

As the year draws to a close, it’s common to take some time to look back on the performance of your business. Reviewing your back office—records, taxes, expense tracking, billing, etc.—is another helpful practice to prepare for the new year. Organizing paperwork and making sure records are accessible will help ease the burden of searching…

We’ve talked about the importance of creating an optimized workforce to future-proof your enterprise. We’ve also talked about how to conduct a skills assessment to figure out skills (and associated roles) that are most important in your independent talent pool. And we’ve observed that competition for those skills can be stiff. Now, let’s talk about…

If your organization is not already using a marketplace to find independent professionals, you may be missing out on great talent. Talent marketplaces—online platforms that connect independent contractors with projects—are continuing to grow in popularity. In 2023, 40% of independent contractors said they used a talent marketplace to find work and 47% said they planned…

Last month I talked about how AI can help you solve open innovation challenges as a research assistant and brainstorming partner. But there’s a dark side to AI in open innovation. While using AI more extensively in your solving activities might be tempting, this can be a big risk.   3 Risks of Using AI in…

A talent network is a vetted and qualified on-demand pool of independent professional talent that managers use to fill project roles quickly. An established talent network that has either worked with your company before or been through a vetting process can be hugely valuable. This group of independents will already be familiar with how to…

As the holiday season approaches, it’s common to find business slowing down. Many clients will take time off for the holidays and prospective clients may not want to start a project until the new year. But it’s important to keep in mind that other businesses may have budgets that need to be spent by the…

Even as employment figures reach unprecedented levels in the U.S., roughly a quarter of the average company’s workforce today comprises contingent labor. This is more than a trend. Independent talent have a solid foothold in today’s labor market. More significantly, independents are working in increasingly strategic roles. They impact a company’s productivity, goal achievement, and…

Employee misclassification can be detrimental to your business. Here are 10 key differences between 1099 independent contractors and W2 employees that you should know.

The future is always on the business radar—for example, the economic future, the market future, the regulatory future. But the idea of forecasting the future in the context of work and how it gets done—what we’re calling the “future of work”—is new. The model of a predominantly onsite 40-hour work week has been in place…

Engaging independent contractors comes with many benefits: increased staffing flexibility, access to in-demand skills, cost savings, and a workforce for project-based work. But in exchange for these advantages, companies must be aware of how to navigate compliance in order to operate legally when engaging contingent workers. From a legal perspective, independent contractors fall under a…

When business is slow, there can be many factors at play. It might be the time of year for your industry, the holiday season, changing consumer trends, or a sign your pipeline needs a boost. As an independent professional, work can ebb and flow from month to month. One day you may be swamped with…

In today’s fast-paced business space where change has become the norm, worker skills requirements frequently shift. The result is not really a skills shortage, though media and many business experts use that term. Rather, demand is greater than supply at different times and for certain skills. In today’s market, this situation applies to many technology…

If you ask leaders at your enterprise what “workplace flexibility” means, what would they say? Many answers would probably revolve around ideas like remote/hybrid arrangements, variable work schedules, and skill-based roles, and they would be right—to a degree. These and other tactics certainly contributed to enhanced flexibility, but on their own, they can fall short…

By now, we have all heard about digital nomadism. Earlier this year, I authored a long form piece for HBR on the topic, on how to get started and have a successful digital nomad experience. However, while the phenomenon of employee nomading has been extensively recorded, its allure is now expanding beyond individuals to encompass…

Finding new work is always top of mind when you run your own business. Independent professionals are increasingly relying on online talent marketplaces as a sales channel for their services. In 2022, 41% of independents who provide services to businesses said they found work on talent platforms, an increase from 15% in 2015 and just…

The use of gaming techniques in non-game situations—known as gamification—has been a consumer staple for some time. From frequent flyer miles to coffee shop punch cards, retail marketers understand that motivating customers through freebies is an effective strategy. In recent years, gamification has made its way into the workplace, mainly by way of training programs…

Giving and receiving feedback to and from your high-value independent professionals offers for great opportunities for increased innovation and continuous improvement in the business. Establishing a feedback culture in this talent pool compounds the benefits to the enterprise. Even if you do not (yet) have such a culture in your employee population, creating one among…

An independent contractor agreement or contract is an important part of working with contingent talent. Contracts protect both your business as well as the independent contractor from a legal perspective. They also provide a valuable opportunity to clarify details and questions surrounding the project, discuss any discrepancies, and establish a good working relationship. Here are…

Federal government contracts are a great option for many independent professionals looking to grow their businesses. Federal government contracts are a form of procurement for the government to obtain services for their direct use.   Winning these contracts requires quite a bit of preparation and a different proposal process from commercial businesses. These contracts have strict…

The workforce of many companies today consists of a mix of full-time and contract workers. When considering whether your recruitment strategy should include independent contractors or employees, there are many rules and regulations to consider as well as practical applications. Employees vs. Independent Contractors Employees work for a single employer, who can dictate how, where,…

Used in the right ways, AI can be a huge help to any open innovation solver who is looking to get more out of the experience. Used as a productivity hack, including AI in your solving activities can: Make you much more efficient Streamline the solving process Help uncover new angles that you wouldn’t have…

MBO Partners and Staffing Industry Analysts recently released a new report detailing the advantages of direct sourcing in talent management. Direct sourcing is the process by which a company leverages independent talent sourced from an internally developed pool to perform work as contingent or temporary workers Direct sourcing has evolved significantly and has become a…

Is your workplace fun? While many enterprises don’t evoke the Darth Vader theme in workers’ minds when considering this question, too many consider fun a distraction and detrimental to productivity. In fact, research has shown that fun is a strong component of well-being, which is key to productivity. Creating a culture that includes fun is…

This guide is focused on giving you tools that you need to plan and launch a direct sourcing program in your enterprise.

Financial management is an important part of starting your own business. As an independent contractor your job isn’t just about keeping your clients happy and moving from project to project. It will also involve taking on an administrative role to help make sure your business runs smoothly and compliantly. Here are eight financial management tips…

While the business world has always been somewhat aware of the evolving nature of the workplace, the “future of work” is now a hot topic that leaders are paying close attention to. That future relies heavily on the workforce composition and culture. These nine tips can help your enterprise be ready for whatever comes down…

“Pivot” recently joined the business lexicon to define the place where many companies arrive at some point in the growth cycle. The term refers to a significant and structured change to a strategically important part of the enterprise. A pivot may happen in response to changing market conditions, customer feedback, product performance, or any perceived…

Talent communities can be a valuable way for enterprises to quickly engage skilled, pre-vetted talent for projects. A talent community may consist of independent contractors who are currently working with your company or who have previously worked for you.   This is a great group to consolidate, because they have already been vetted, have proven their…

Independent professional talent is increasingly becoming the workforce answer for companies throughout a wide range of industries. Enterprises are putting strategies in place to successfully attract, engage, and retain top talent. The independent workforce is steadily increasing in number as well, providing an indispensable source of professionals with in-demand skills. Here’s what you need to…

Bill rate and pay rate are easily confused, but they both factor into the decision of how much you should charge for your services as an independent contractor, consultant, freelancer, etc. When negotiating with a client at the start of a consulting project, make sure you are clear on your rates, and if you are…

High-value independent professionals who work with an enterprise over time and on multiple projects may have unique insights that can help improve the business. Many have experience in multiple business sectors across a range of companies and are keen to contribute their viewpoints to your operations. You can encourage these contributions by requesting feedback from…

As enterprises transition from role-based to skill-based workforces, the composition of working teams is likely to change. The candidate with the best skillset may be down the hall or an independent professional based across town. Or they may be a digital nomad currently working in Thailand or some other country multiple time zones away. Assembling…

If you’ve ever applied to a job through a marketplace, you’re probably familiar with the process of creating a resume or profile detailing your experience, providing onboarding information, and getting to know a new manager and team. Many independent professionals will return to work with the same company for another contract if they’ve had a…

Learn how to engage contractors using best practices that reduce costs, attract top talent, and reduce misclassification risk.

Remote working has become commonplace for many organizations today. While typical remote workers tend to stay in one geographic area, another group of professionals seek even greater flexibility. Digital nomads are workers who embrace a location-independent, technology-enabled lifestyle that allows them to travel and work remotely. Our latest research found that 17.9 million American workers…

According to our most recent research, about 11% of US workers in 2023 consider themselves digital nomads. That translates to 17.3 million workers who combine remote work with travel. Of this total, about 38% of these workers (6.6 million) are independent professionals while the remainder (10.7 million) are traditional employees. While the digital nomad lifestyle…

Digital nomads—people who embrace a location-independent, technology-enabled lifestyle—have grown by leaps and bounds in the past few years. Today, more than one in ten US workers describe themselves as digital nomads. Some digital nomads work in countries worldwide, traveling frequently, while others explore areas within the US or find one place to stay for a…

Becoming a freelancer for big companies comes with many benefits. Higher-value contracts, bigger budgets, and the opportunity to gain credibility with a recognizable name—just to name a few. However, to be attractive to larger organizations, freelancers and independent professionals must first ensure they have a reliable, trustworthy business in place. Follow these 12 tips to…

Digital nomads have a passion for travel, desire for adventure, and interest in new cultures. Becoming a digital nomad has increased a dramatic 131% from 2019 to 2023. Our latest research found that more than 17 million American workers currently describe themselves as digital nomads. A nomadic lifestyle can be both exciting and challenging. If…

Stepping into the world of open innovation can be a novel experience, even for seasoned independent professionals. Success in this arena requires high levels of creativity, along with patience and the ability to roll with rejection. Top open innovation solvers have learned a lot on the way to success. Many have found that they need…

As a small business owner in a rapidly evolving digital landscape, staying ahead of the curve is crucial for businesses of all sizes. While TikTok might be synonymous with dance challenges and viral memes, it also offers a goldmine of opportunities for consultants to engage with their audience and showcase their expertise. Whether you’re a seasoned…

Competition for high-value independent talent is heating up. The US independent population was 64.6 million strong in 2022, and even with a low unemployment rate, that number is likely to continue to increase as professionals with in-demand skills choose independence as their best career strategy. To attract people with the right skills, it is critical…

A key component of a highly effective direct sourcing program is the ability to attract the high-value independent talent that the enterprise needs. In one sense, the activities associated with accomplishing this are like employee recruitment. However, there are differences that are important to understand, and one of these is the way in which you…

Look at any business sector and any enterprise function, and you are likely to see two things: the “graying” of the workforce and the steady rise of the first digital native generation. Generally speaking, these are the two ends of the generational spectrum. GenX and Boomer workers have accumulated years of experience in their areas…

If working remotely while traveling the globe sounds like a dream come true, you’re not alone. Millions of Americans report working as digital nomads—people who embrace a location-independent, technology-enabled lifestyle while living and working remotely. Whether you’ve already tested the waters of digital nomadism and fallen in love with it or are simply curious to…

Learn what causes independent contractor engagement risk and how to mitigate that risk.

An independent contractor agreement or contract is an important part of engaging contingent workers. While your company and the contractors you work with want to get started quickly, skipping a contract can lead to problems in the future.  Three Reasons to Use an Independent Contractor Agreement  Establish legal protection  A written contract provides legal protection…

When considering Gen Z, it is valuable to distinguish between life stages and generational attributes to pinpoint what’s truly unique about the youngest workers. Some of the media about Gen Z is actually age-specific, not generation-specific. In other words, every generation has a similar set of beliefs, outlooks, and perspectives when they are in their…

An optimized workforce can produce significant business and competitive advantages in an enterprise. Attracting and engaging high-value independent professionals with in-demand skills offer key strategic opportunities that can effectively move the business forward. Though the engagement of people with high-value skills is certainly a major benefit, there is more value available in your independent talent…

There are many benefits to using direct sourcing as a strategy for talent acquisition. Direct sourcing allows organizations to find highly-qualified independent talent by using their own resources rather than relying on a third-party staffing agency or consulting firm. Direct sourcing can help enterprise managers reduce the time and cost of recruiting. Modern tools like…

What is a Digital Nomad? Digital nomads are people who embrace a location-independent, technology-enabled lifestyle. Digital nomads travel to different cities and even different countries to work remotely and explore new surroundings. Some people travel for years while others go for just a few weeks or months at a time. How do You Become a…

Business management experts have used the term “intelligence,” preceded by different qualifiers, to describe a range of soft skills that are important in today’s workplace. Social intelligence, as the term is currently used, is an umbrella for others such as emotional and cultural intelligence. Social intelligence plays a crucial role in the workplace, contributing to…

As a critical source of skills for key initiatives and strategic projects, the independent professionals you engage are part of your team, whether short-term or long-term. Particularly when you have engaged high-value independents who you want to continue to engage, offering feedback to these contractors is as important as giving feedback to employees. While HR…

Boosting your productivity as a small business owner is never a bad thing. Two of the most valued benefits to being an independent contractor are the flexibility to work where want and the ability to work how you want. Whether you work out of a home office, leased space, or coworking facility, you’ve likely spent…

Re-engaging independent talent who have previously worked with your business can be a great way to save time and money. When independents are already familiar with the processes and culture of your company, they can get to work faster and more comfortably. Not only will they already understand expectations for work, but managers and internal…

Diversifying revenue streams for your small business can be a helpful way to prepare for uncertain times. Rather than putting all your eggs in one basket, a diversified business is more likely to withstand a cash shortage, economic downturn, or a dry spell of client contracts. Here are five ideas to consider when thinking of…

What are soft skills? Soft skills, often called people skills or emotional intelligence, are defined as the ability to interact amicably with others. They are personal attributes that can affect relationships, communication, and interaction with others. Soft skills can be invaluable to business success, but why are they so important? While soft skills can at…

The landscape of work has been in flux for some time as technologies and societal shifts have influenced how companies think of work. Enterprises are reassessing their HR models and many leaders realize that a view of the workforce as a rigid structure of job descriptions and defined career paths is going the way of…

We’ve covered several topics about a direct sourcing program, including building a skills assessment for your program business case, three areas to help improve understanding, the company functions that comprise your direct sourcing dream team, planning the stepping stones of your direct sourcing journey, and keys to program success.   A direct sourcing program does not…

As we wrap up celebrating Independence Day, it is a great time to discuss what lies ahead for Americans. Some are saying the U.S. will remain the superpower it currently is, while others think our century may be over and China is positioned to take the title. McKinsey recently published a report on global wealth,…

If you have the characteristics of a successful open innovation solver, this world of solution crowdsourcing could be just the ticket. In addition to taking on new and exciting challenges, your participation (and winning solutions) can help you get noticed by potential employers, network with other solvers for business opportunities, and further establish your credentials…

Finding a way to thrive in today’s uncertain economic, political, and social environment is a challenge for modern businesses. In order to remain agile and sustain a resilient workforce, enterprises need to be flexible, leverage the latest digital tools, and reduce barriers to entry. Shifting towards a hybrid workforce model that includes both employees and…

Engaging an independent contractor to contribute specific skills to a project, help develop a new line of business, or assist in building out a new market is often much more cost-effective than spending the time and resources to recruit a full-time employee for the same need. Cost Differences Between Independent Contractors and Employees There are…

Not long ago, but long enough that it can feel like “once upon a time” to many people, the enterprise-worker relationship was simple, a straight line from employer to employee. Processes, procedures, and policies were built for this straight line and talent management strategies revolved around it. Around the beginning of the century, things began…

Direct sourcing enables enterprises to incorporate independent professional talent into their workforces easily, giving enterprise access to in-demand skills in a faster, more cost-effective way. A primary method for collecting and storing talent when direct sourcing is the creation of a talent pool, generally placed within an internal or proprietary section of a talent cloud…

As the use of independent professional labor continues to grow, so does the need for more efficient ways to find and leverage this increasingly valuable talent pool.

The legal risks associated with hiring independent talent are a common topic in business media. There are resources available for enterprises to tap in order to ensure that the engagement of independent contractors is in compliance. But even though you may understand when to classify workers as independent contractors and how to avoid common misclassification…

Independent contractors are a great way to be proactive when it comes to market fluctuations. More enterprises today are shifting to an agile workforce that is composed of a mix of full-time and independent talent. In fact, in a 2022 survey, companies reported that contingent labor made up 28% of their workforce. And two-thirds said…

Startup costs for a new business are an important consideration. One of the biggest hurdles you will cross when going independent is truly making sure you are ready for self-employment. If you want to start your own business and already know the skills and services you want to offer to clients, congratulations—a big part of…

Hiring independent contractors over full time employees comes with many benefits. Today, more than 51 million people have chosen to work independently rather than have a permanent, full-time job. And most independent contractors are very satisfied with the flexibility and creativity their career path affords. Most plan to remain independent and even build a larger…

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. National Labor Relations Board (NLRB) Re-adopts Standard…

Adding open innovation to your independent business might seem daunting if you are just starting down that path. It can even be scary. While you may be an expert in your field, brilliant at writing winning proposals, and have mad marketing skills, open innovation solving requires that and more. With all your professional accomplishments, stepping…

A consulting agreement between an independent contractor and a client should provide legal protection for both parties while also clearly establishing expectations of the project to be completed. The exact language and sections included in your contract may vary depending on your industry, client type, and location. Independent contractor agreements are particularly important for independent…

In previous direct sourcing articles, we’ve covered building a skills assessment for your program business case, three areas to help improve understanding, the company functions that comprise your direct sourcing dream team, and planning the stepping stones of your direct sourcing journey.    In the previous article in this series, we considered the baseline elements…

Lean methodologies help maximize the use of resources, cut down on waste, and promote collaboration. With continuous improvement as its foundation, the lean approach fosters adaptability while maintaining quality. Taking a lean approach to your workforce can improve agility, increase innovation, and enhance productivity.  It can also position your company to weather economic downturns and…

Team management has some tenets that are independent of the physical location of members. Whether onsite or distributed across several time zones, it’s important to establish clear roles, expectations, and norms, communicate frequently, celebrate successes, and create opportunities for social interaction and fun. What differs is the way a manager goes about accomplishing this. Many…

Incorporating independent talent into your workforce is a great way to remain agile and deliver innovative solutions. Independent contractors offer flexibly when it comes to growing and shrinking your workforce. As specialists in their respective fields, they offer access to in-demand skills that might not be present in among full-time employees. These benefits can help…

What is a Consulting SOW (Scope of Work)? A Scope of Work (SOW) is a document that defines how a project will be executed through specific tasks, activities, deliverables, and timelines. A SOW also provides important legal protections for both you and your client. While many people associate SOWs with large-company projects, they are equally…

Hiring freelancers is a key part of a successful project-based work environment. Many business organizations are moving to a new model of hiring that incorporates both freelancers as well as full-time employees. Freelancers are independent, project-based workers who bring in-demand skills to an organization’s workforce and help them maintain a competitive advantage among their peers….

Tax planning and prep is an important part of your job as an independent contractor. Paying quarterly estimate taxes throughout the year is a good practice that helps eliminate a big tax burden and possible fine at the end of the year. Quarterly payments are due on April 15, June 15, September 15, and January…